Income tax threshold to be increased to $1 million July
The income tax threshold for all Jamaican PAYE workers will be raised to $1 million as of July 1.
This was announced by Finance Minister Audley Shaw this afternoon in the House of Representatives as he opened the debate on the National Budget.
The $1-million income tax threshold is a variation of the Jamaica Labour Party’s campaign promise to free all workers earning up to $1.5 million of their income tax obligations while maintaining the $592,800 threshold for other workers.
The campaign proposal was described as unworkable and inequitable by some critics.
This afternoon, Shaw said he had taken all the comments into consideration and the plan would now see the tax threshold for all Pay as You Earn (PAYE) workers moved to $1 million come July.
He said the threshold will be further increased to $1.5 million on April 1, 2017.
The finance minister said this now means that instead of just $118,000 people benefitting, 251,792 people will now be removed from the income tax roster.
Shaw has not yet unveiled the tax measures which will fund the plan.
He is still speaking in the debate.